Sohn India Conference: Mission to hand out multibaggers

Mandakini is the better half of Shyambhai, the wizened proprietor of Shyam Tea Stall in Dalal Street.

She was preparing to send the three of us – Mukeshbhai, Jigneshbhai and me – to attend the famous Sohn India Conference 2018.

To prepare us for the arduous journey and conference, she had packed extra packets of Kamala Pasand Gutka in our backpacks.

We had also been given hipflasks of steaming hot kadak adrak chai to keep our energy levels high during the debates.

“Jabra multibagger stocks le ke aana,” she said, waving us goodbye.

Most of Dalal Street had come to see us off.

At the Sohn conference venue, the three of us decided to spread out and take vantage positions.

I sat in the middle row while Mukeshbhai and Jigneshbhai took the right and left rows respectively.

Raamdeo, Raamdeo …

Suddenly, the hall reverberated with chants of ‘Raamdeo, Raamdeo’.

Raamdeo Agrawal made a grand appearance in a manner befitting his stature of freshly-minted Billionaire.

There was clamour amongst the novices to click selfies with Raamdeo in the frame. Some stood up to give him a standing ovation.

The reason for Raamdeo’s popularity amongst the hoi polloi is because he is amongst the handful of individuals to have single-handed amassed a fortune in excess of Rs. 1000 crore from the stock market.

The astonishing aspect is that he has revealed all the secrets of how he managed this incredible feat in a youtube interview.

It is evident that if we follow in his illustrious footsteps and obey his instructions, we can also become multi-millionaires from the stock market.

First holder of 100-bagger stock

“We bought at Rs 50-60 crore valuation, we put Rs 20 crore, which gave us 30- 35 percent (stake). That was 6 years back. We sold it for Rs 5,000 crore .. 100x .. that’s the power of private sector banks” Raamdeo had said with obvious pride at his ability to spot winners early on.

Raamdeo narrated the fascinating story of how Sanjay Agarwal, the illustrious promoter of AU Small Finance Bank, had approached him when he was a struggler and requested for financial help.

One look at Sanjay Agarwal had convinced Raamdeo that AU was a 100-bagger in the making.

Basant Maheshwari interpreted Uday Kotak’s prophecy to mean that private banks and NBFCs would grow at a scorching pace of 27% CAGR.

Reading between the lines from this @udaykotak interview. A 30:70 ratio between private and public moving to a 50:50 ratio in 5 years assuming a 15% industry credit growth means a 27% CAGR for private financiers. Smaller companies in niche segments can grow faster ! https://t.co/CgZQNlSM6x

Even a raw novice like me knows that a growth rate of 27% CAGR means that multibaggers will come gushing out!

RBL Bank can be a 10-bagger

“RBL Bank can be a 10-bagger if its size and balance sheet grow in a sustainable manner,” Raamdeo said in an excited tone.

There was an audible gasp from the distinguished audience. Everyone sat erect in their chairs and paid attention.

“RBL Bank will be able to encash its large pool of profit,” he added.

Recommendations at *Sohn Conference 2018*

*Ramdev Agarwal*1. *RBL* – P/E ratio of 33, slightly expensive, can be bought around P/E of 25 for a long term horizon. 10 bagger if size and balance sheet can sustainably grow. Micro finance exposure needs to reduce@SurabhiUpadhyay

Now @rblbank “Apno Ka Bank” is “Hamara Bank” too. Basking in d reflective glory of the gorgeous @shanta_vallury who is also Head HR, CSR & Internal Branding @rblbank. RBL& GGF will partner to improve lives of martyrs’ children & also work in program for adolescent girls. pic.twitter.com/KNMpwVLpE9

“RBL Bank is perfectly poised to deliver steady and profitable growth, with its demonstrated capability across segments, strategic clarity of management and a good grip on asset quality,” the wizards at HDFC Sec opined.

“As high-yielding retail loans rise and the lucrative BBB vertical expands, an uptick in profitability is inevitable,” they added.

“The Rolodex Rolls On,” the wizards at Nirmal Bang said.

They explained that there is “continued validation of RBL’s business model” given that all metrics are decisively moving in the direction of Vision 2020.

The NIM has expanded to 3.98%, up 46 bps YoY, despite a challenging interest rate scenario.

The asset quality has remained well under control with marginal impact from RBI’s February 2018 circular on stress resolution.

Retail loans and DB&FI are witnessing a rise in loan share in consonance with the thesis.

A similar view has been expressed by Motilal Oswal and Chola Wealth.

Contra trades are not contra. The data supports the trade, but consensus disregards data: Shankar Sharma

Shankar Sharma also enjoys immense popularity amongst the hoi polloi because he has been feeding us with multibagger stock recommendations on a regular basis.

Shankar’s investment modus operandi is to home in on stocks which are not in favour of the cognoscenti.

Such stocks have no lofty expectations embedded in them and so the risk of a downside is virtually nil.

However, a slight improvement in the operational metrics is sufficient to send these stocks surging like rockets into the stratosphere.

In the wake of the spectacular success of the twitter stock recommendation, Shankar explained that a “contra trade” is one where the cognoscenti is ignoring the writing which is on the wall and shunning the stock for extraneous reasons.

One should always respect the data and pay attention to it, Shankar advised.

Thanks Pratik. Contra trades aren't actually very contra….the data supports the trade, but consensus disregards data. So I always say: when somebody ignores data, it's they who are being contrarian. Not me! https://t.co/h0Xf4HWHcU

8 Comments

I bought Central Bank of India in last bull run, Granules India in this bull run, PNB housing after his last Conference recommendation of lakh Crore ki kahani. I LOST BADLY IN ALL THREE. So I no more buy on his recommendation. RBL Bank is already in my portfolio since I bought it on listing and I also think it has good long future. But now after his recommendation, I am worried.

Yes, I agree with aforesaid observations as CBI was recommended not only by him but also by his friend RD and I too bought it at that time. Even the duo recommended to buy its rights offering subsequently and the stock has performed miserably resulting in huge loss !!! We must take such advices with pinch of salt as it seems that vested interests are always at play !

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